it is tuesday, june 7th, 9:00 a.m. i'm catherine kobayashi in tokyo. officials kicked off talks in beijing. the u.s. is urging choir no to find diplomatic solutions in the south china sea. chinese president in an opening speech stressed the importance of refraining from confrontational attitudes. >> translator: even members of a family may not always agree with each other if there are differences of opinion that cannot be resolved immediately, the two sides should deal with

it in a prague mat tick and constructive manner. >> china built three runways in the separately islands which can be used by military aircraft washington is also alarmed about beijing's new surveying activities on scarborough shoal west of the philippines. these sites form a large triangle that encompasses international sea lanes and underwater communication cables. u.s. secretary of state john kerry said disputes must be resolved by rule of law, diplomacy, and negotiation. >> the only position we've taken is, let's not resolve this by unilateral action. let's resolve this through rule of law. >> the court of arbitration in the hague is expected to rule soon on the legality of china's claims in the area. >> translator: china will not take part in the court proceedings and will not accept whatever decision the court may deliver. >> at a conference held over the weekend in singapore, chinese

defense officials reaffirmed their country's position on the issue. on the economic front, u.s. treasury secretary jack lew urged china to curb its overproduction of steel. lew said the problem has a damaging and distorting effect on global markets. chinese finance minister lou jiwei responded his country is taking concrete actions. he told reporters he believes u.s. political and business circles has forced the u.s. envoy to address the issue. lew stressed last year china cut about 90 million tons of excess capacity in its steel sector. he said his country would continue to strengthen measures to deal with the situation. u.s. navy officials are prohibiting all of their sailors in japan from drinking alcohol both on and off their bases. the order comes after a sailor was arrested on suspicion of drunk driving in okinawa. police arrested aimee mejia on sunday. they believe she drove in the

wrong lane for about 70 meters and collided head-on with two cars. two people were injured, one with a chest fracture. investigators say mejia told them she had been drinking alcohol at the home of a colleague who lives outside of kadena air base where mejia is stationed. police officers found her blood alcohol level was about six times the legal limit. she couldn't walk straight after the accident. late last month the u.s. military banned all personnel in okinawa including civilian workers from drinking off base. tension in the southern prefecture has increased after an american base worker was arrested last month. police say he confessed to stabbing and strangling a local woman. japanese prime minister shinzo abe has condemned the latest incident. >> translator: it is extremely regrettable and outrageous. we immediately lodged a strong

protest with the united states. we also urged the u.s. to prevent such incidents from recurring, to further tighten discipline, and to fully cooperate with police investigations. >> abe said the japanese government will introduce its own measures to secure safety including putting 100 additional police officers on duty in okinawa. researchers in japan are >> inappropriate but not illegal. the review requested after allegations he misspent money for private purposes. two investigators were entitled with looking into the investigation.

>> translator: he started his news conference on monday by boeibo bowing in apology for causing trouble. he's been battered by criticism since the allegations appear in a magazine weeks ago. one of the causes in question was for staying in this hotel near tokyo with his family during new year holidays, two years in a row. the lawyer said it was not appropriate because the retreat was minely for private purposes but also said it was not illegal because it does not restrict the way political funds are used. they said similar cases should be considered inappropriate. the cost of all six totalled over $7500. the allegations also covered dining expenses, the lawyer said 14 such cases involved inappropriate spending of another $3,000

masuzoe is known as an art lover and was also accused of using the funds to buy art. some of it on the internet. the lawyers again said the purchases were legal but inappropriate. they say masuzoe bought many artworks, and that made them suspicious. masuzoe said he will return all the money in question, about $10,000. and give it to charity. >> translator: i deeply regret what i've done. it's extremely disgraceful and deserves criticism. >> reporter: but he said he won't step down from his post. people in the capitol did not seem convinced. >> translator: i felt he was trying to wriggle out of the news conference. >> translator: he should resign gracefully. >> reporter: a legal expert says politicians are supposed to have better judgment and ethics. >> translator: it doesn't mean

he can do anything, as long as he doesn't violate the law. masuzoe must be held accountable to voters and metropolitan assembly. >> reporter: monday's conclusion was highly anticipated because of the issue of legal loopholes. masuzoe is about to face more scrutiny from tuesday in the metropolitan assembly. the question is whether he can convince the public that he still qualifies to serve as governor. nhk world, tokyo. >> japanese opposition parties are demanding sworn testimony from one of prime minister abe's top ministers. they called on him to explain the details of a political funding scandal.

>> translator: i deeply apologize for my absence and for the worries and trouble that i've caused. >> prosecutors decided last week not to indict him and two of his secretaries in exchange for political influence. he pledged to restart his own investigation into the allegations as he had promised and to explain the outcome. the head of the leading opposition party said he wants the results before next month's upper house election. he also called him out for prolonged absence. he says he was absent because of health reasons. >> we can't accept the timing of his appearance after the closing of the diet. >> the party held a meeting to look into the allegations. it's urging the main governing

de democratic party to be sworn in as a witness to a diet committee. >> researchers in japan are plotting a clinical study that could help reduce costs for treating a common eye condition. >> i'm convinced that we are making great progress. >> researchers say they intend to use special stem cells called ips cells on patients. the cells are special because they can be developed into different types of body tissue. the plan is to use them to treat patients with a condition that causes vision loss in people after middle age. researchers say their new method involves transplanting cells from one person to another. they say the cells are less likely to be rejected. in 2014 researchers conducted the first operation to

transplant retinol tissues generated from a patient's own cells. it slowed down the deteruation of the eyesight. it takes ten months and hundreds of thousands of dollars. researchers say the new method can drastically reduced and the cause and time for treatment. >> translator: i believe we are leading the world in our efforts to apply regenerative medicine to patients safely and quickly. >> the plan is to test the new method in surgery on a patient as early as next year. a look at business. waiting for clues when the u.s. federal research will raise the key interest rate. they got word from janet ellen. we are joined from the business desk with details so what did yellen have to say?

>> yellen said in late may a hike would be appropriate and showed much more job growth. on monday yellen called the figures disappointing. analysts think that's unlikely fed officials will decide to raise the rate when they hold a policy meeting next week. >> new questions about the economic outlook have been raised but the recent liberal market data. >> but yellen describes the overall labor market as quite positive. she says further gradual increases in the rate are likely to be appropriate. yellen indicates the fed will keep monitoring the labor market closely. now following the speech, both major industries ended up more than half a percent. many investors were relieved as it seems the fed won't be raising interest rates so soon. let's see what is happening with tokyo markets. we'll go to ramine.

what are you sieeing over there? >> a lot of traders also taking yell yellen's speech and suggesting rates wouldn't really go up until the economic outlook becomes a little clearer. so let's have a look at how all of that is hitting tokyo stocks this tuesday morning, june 7th. both indexes in the positive. now just a reminder, yesterday the nikkei fell 0.4% on a stronger yen or weaker dollar after the weak u.s. jobs data on friday however we're seeing a slight pop higher in the dollar and really the focus is squarely on what the fed may do in the next couple of months. >> ramine, you mentioned the dollar. how the dollar currencies, as well as bond yields, how are they reacting? >> we did see a reaction there especially dollar yen. 107 spot, that was trading at

the 106 yen levels this time yesterday. the dollar popped higher after a star retreat on friday. let's not forget that following the may employment data in the u.s. analysts say the reason for the dollar's gains was that yellen's words were essentially still consistent with the impression of a gradual increase in rates in the u.s., which of course makes the dollar more attractive. another significant thing was that the bank said average yield on german government bonds has fallen below zero for the first time ever. we're looking at the ten-year german government bond, which still is slightly above zero as you can see but we're talking about the average government bond yield falling below zero for the first time ever. the yield on japanese bonds was 1.025 and aides to the negative interest rate scenario seen across global financial markets. the credit rating agaency investment and information

lowered the rating outlook or jgb siting the consumption tax hike by over two years. also want to highlight gains in crude oil prices, crude benchmarks rose. up 1.8% and wti was up over 2%. let's get a quick look at other asian indexes. the kospi is up seven-tenths of a percent. australia trading higher, as well. china markets open in an hour and a half. i'll have more updates then. back to you. >> sounds good. we'll touch base with you then. thanks for that update. a scandal at mitsubishi motors, officials falsified data and mithey suspended production. their sales plummeted and now they are struggling to make ends

meet. >> many small businesses that produce parts is in japan. this steel work has ten employees. he has run the company for 50 years. his workers produce mufflers and other engine parts, but in the one-month period since the scandal broke, his firm has lost more than 70% of sales. he bought this machine last year and borrowed $16,000 to provide higher quality parts. >> translator: i never thought this would happen. i really regret in investment.

>> with declining orders he had to slash operations to only three days a week. it's not the first time his firm's earnings were hit by a scandal at mithe company. he says the situation this time is more severe. >> translator: something similar happened in the past, but over time, the lessons have been forgotten and the problem has returned. i want to do what i can, but i don't know what to do. >> in mid may, mit they will go under nissan. he thinks the worst-case

scenario has been averted but they have yet to announce if and when the company will resume production of the four models. >> translator: i want mitsubishi to resume production in earnest as soon as possible. that's the only thing i wish. >> the latest scandal involving mitisubshi hit the local economy hard. the question now is whether the auto maker can reform itself and make a fresh start as a reliable company. all right. i'll have more headlines for you in business next yehour. here is a check on markets.

chinese electronic inter milan is buying in the massive investmen investments. sony executives announced the deal with representatives. they will buy 70% of the club's equity for more than $300 million. the firm already owns a soccer team in china's top league. inner milan in 2010 won the champion's league and the fifth consecutive title in the italian league but the club has had an uninspiring record in recent years. team members include japan's

team. >> translator: it will make china strong again. >> the president is a keen soccer fan. government officials announced a plan in april to make china a soccer super power by 2050. japan's defense minister has met with the de facto leader. he said his country's self-defense forces are ready to provide support to the military. he said he was likely the first foreign defense minister to hold talks with san suu he said japan hopes to help myanmar's military improve

capacity in areas such as disaster relief. >> translator: myanmar is a geopolitically important nation. the country's development will contribute to the peace and prosperity of the entire region. >> aung san suu kyi expressed gratitude for japan's support and said she would welcome more assistance from the country. a gun attack monday in northern afghanistan has left at least seven people dead, including a district the incident occurred sunday night at an army camp the iny night at an army camp 30 kill l -- kilometers east. >> translator: the shops and houses that caught fire because of the mortar haves been completely destroyed. now i have nowhere to go

>> translator: i went to see my house and shop in the town. it was all totally destroyed and flattened, still burning. we ran for our lives and we left with only the clothes on our backs. we still can't go back there. the road and houses are destroyed. and still burning. >> some evacuees have been allowed to return but a one kilometer exclusion zone has yet to be declared safe. officials say the fire started at a small arm's depot and spread to an area where heavy weapons were stored. ukrainian authorities detained a frenchman on suspicion of planning attacks in france. they say he was targeting the eros 2016 soccer championship, which opens in the country this week. security officials say they arrested the man late last month

at a check point on ukraine's border with poland. he was carrying automatic rifles, rocket propelled grenades and more than 5,000 bullets. they say his targets included government buildings and mosques. french media outlets report that police found a shirt with the insignia of an extreme right-wing group to the suspect's home. authorities in france have been on alert as the country prepares to host the month-long tournament. officials say about 100,000 police and military personnel will be deployed to maintain security. military experts say people can easily buy weapons in eastern ukraine as fighting between government and pro-russian forces continues. it's time now for a check of the weather. people in the u.s. state of florida are dealing with the start of hurricane season. a tropical storm is delivering severe weather. our meteorologist robert speta has details.

>> yes, actually the start of the hurricane season coming rather aggressively this year. this is the third named storm system of 2016. it's tropical storm colin and you can see on the satellite imagery being skewed off towards the northeast believe it or not. this is the infrared image. low clouds and the center of circulation is towards the west of this bulk of that convection. that precipitation out here and that's where all the problems are right now. you have all this myseoisture a on shore winds combined with our high tide, our spring tide taking place at this time causing all sorts of coastal problems. i'll show you video actually first coming out of gulf port, florida. look at this. this is what we're talking about here, the coastal flooding. the tide getting rose up and numerous homes being submerged. you can see this man coming through with a kayak. tropical storm warnings in place into tampa bay, florida, as

well. actually the high school graduations for that city all being cancelled or at least postponed until the storm system passes but because of that flooding out there, travel alerts still being issued. actually interstate 10, one of the major thorough ways stretching across the entire u.s. but here the florida northern areas of florida taking some hits here, as well on your monday afternoon. there was a tornado reported there knocking some vehicles off of the highway. this is definitely a rather serious situation even though it's not a hurricane. it's a tropical storm still on going. winds 82 gusting to 102 kilometers per hour and tropical storm warnings in place. heavy rainfall is also going to be a threat, not just coastal flooding. out towards the carolinas and northern florida we could see 150, potentially 200 millimeters with combined with 90 mile per hour winds and anybody out to sea, this will be rough.

6 meter high waves is enough to cause serious seasickness and definitely small craft advisories at the very least have been issued across this area. a lot of this is being skewed towards the north east because of the passing frontal area is helping enhance some of the strong thunderstorms not only along the coastline but another front pulling through the great lakes triggering up storms there, as well. eventual actually rolling across most of the lakes. you can see large hail come out of this in parts of the midwest. maybe even strong winds. look at chicago actually showers there for you 19 for your high on tuesday. let's take a look now here in the northeastern asia. do want to talk about what we are seeing right now. actually, the rainy season, if you remember, has started across much of western central japan this past weekend. that is coming in right on queue because we have this area of low pressure coming through, bringing heavy shower there is into parts, this is going to work it's way back towards the east. some could be strong heavy rain,

as well. meanwhile back towards the west in the southeastern china, we're actually seeing more heavy showers kick off and some areas in the providence this past weekend we had a tornado reported, too. this is going to be on top of that. take a look at that. hong kong showers, taipei, as well on tuesday. here is the extended out look. ♪ ♪

and that wraps up this edition of nhk "newsline." i'm catherine kobayashi in tokyo. thanks for staying with us.

announcer: "euromaxx highlights." and here's your host, meggin leigh. host: hi, everyone, and welcome to our highlights show with the best picks of the week. here is what is coming up. flying high. why ultralight gliders are still a hit with pilots. stylish trend. spotlighting the great wallpaper revival. and island charm. why jersey is a popular tourist destination. london is a city filled with tradition and diversity. but one of the places where tradition still looms quite large is savile row, the famous street in london's west end where city gents buy their custom-made suits.